The Hindu Business Line : Tinplate plans Rs 100-cr greenfield project

TINPLATE Company of India Ltd (TCIL) plans to set up a 2,00,000-tonne per annum greenfield project in Jamshedpur at an estimated investment of Rs 100 crore. The company also plans to set up a downstream project with a view to offer a "differentiated value proposition" to customers.

Speaking to newspersons after the company's 85th annual general meeting held here, the Managing Director, Mr B.L. Raina, said the proposal to set up a greenfield project is now at an "embryonic stage," and plans in this regard would be firmed up by mid-2005. As things stand now, the plant should be ready by 2008. The downstream unit would basically produce food and beverage cans.

Mr Raina said that the immediate focus is on ramping up the capacity of the company's plant in Jamshedpur to 1,63,000 tonnes per annum by the last quarter of the current fiscal. This would entail an investment of Rs 39 crore. By October 2004, the plant would attain a capacity of 1,45,000 tonnes per annum.

According to him, TCIL has appointed the Boston Consulting Group to "revalidate and redefine" the company's goals and provide a "strategic direction in the race towards growth." Besides focussed sales in the domestic market, the company would continue to export to Europe, West Asia and South-East Asia.

In the current fiscal, exports would account for 23 per cent to 25 per cent of overall sales. This would translate into a turnover of Rs 85 crore to Rs 100 crore, Mr Raina said.

Earlier, responding to shareholders' queries, the Chairman of TCIL, Mr S.S. Prasad, said that due to a profit of Rs 21.34 crore recorded in 2003-04, the company's accumulated loss had come down to Rs 47.31 crore. Efforts were on to renegotiate on high-cost debts and reduce the overall interest burden. A dividend payout would be possible only after the losses were totally wiped out.

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